Realty Income Corporation

DB:RY6 Stock Report

Market Cap: €48.5b

Realty Income Valuation

Is RY6 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RY6 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RY6 (€55.68) is trading below our estimate of fair value (€98.97)

Significantly Below Fair Value: RY6 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RY6?

Key metric: As RY6 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RY6. This is calculated by dividing RY6's market cap by their current earnings.
What is RY6's PE Ratio?
PE Ratio58.9x
EarningsUS$866.69m
Market CapUS$51.20b

Price to Earnings Ratio vs Peers

How does RY6's PE Ratio compare to its peers?

The above table shows the PE ratio for RY6 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.3x
HABA Hamborner REIT
64.5x10.8%€527.9m
SPG Simon Property Group
24.5x-0.2%US$69.0b
KIM Kimco Realty
49.1x13.0%US$17.4b
REG Regency Centers
35.2x4.3%US$13.8b
RY6 Realty Income
58.9x18.6%€51.2b

Price-To-Earnings vs Peers: RY6 is expensive based on its Price-To-Earnings Ratio (58.9x) compared to the peer average (43.3x).

Price to Earnings Ratio vs Industry

How does RY6's PE Ratio compare vs other companies in the European Retail REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RY6 58.9xIndustry Avg. 22.7xNo. of Companies4PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RY6 is expensive based on its Price-To-Earnings Ratio (58.9x) compared to the European Retail REITs industry average (22.7x).

Price to Earnings Ratio vs Fair Ratio

What is RY6's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RY6 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio58.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RY6's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RY6 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€55.68
€61.32
+10.1%
6.6%€71.46€56.22n/a18
Nov ’25€54.46
€60.63
+11.3%
5.9%€69.48€53.73n/a18
Oct ’25€56.85
€58.67
+3.2%
5.8%€67.76€52.40n/a18
Sep ’25€56.03
€57.82
+3.2%
6.1%€67.48€52.18n/a18
Aug ’25€53.32
€56.41
+5.8%
8.6%€68.90€51.44n/a16
Jul ’25€48.60
€56.95
+17.2%
8.4%€70.92€52.25n/a16
Jun ’25€48.99
€56.20
+14.7%
8.4%€70.06€51.62n/a16
May ’25€50.19
€56.90
+13.4%
9.3%€71.00€50.45n/a16
Apr ’25€50.10
€56.87
+13.5%
9.0%€70.17€51.70n/a16
Mar ’25€47.85
€57.76
+20.7%
8.5%€70.24€52.68n/a15
Feb ’25€50.54
€58.58
+15.9%
8.2%€70.17€52.63n/a14
Jan ’25€52.56
€56.96
+8.4%
11.0%€68.80€48.89n/a13
Dec ’24€50.30
€55.06
+9.5%
13.2%€69.36€43.80n/a12
Nov ’24€45.52
€58.03
+27.5%
14.3%€71.81€45.36€54.4612
Oct ’24€47.24
€63.79
+35.0%
6.9%€71.30€55.35€56.8515
Sep ’24€52.10
€62.86
+20.6%
6.0%€69.59€55.86€56.0314
Aug ’24€55.54
€62.40
+12.4%
4.4%€67.59€57.81€53.3214
Jul ’24€54.50
€65.26
+19.7%
4.1%€70.98€60.71€48.6014
Jun ’24€55.02
€65.13
+18.4%
4.2%€70.56€60.35€48.9915
May ’24€56.70
€64.15
+13.1%
4.2%€69.18€59.17€50.1916
Apr ’24€57.65
€65.84
+14.2%
4.2%€70.63€60.41€50.1016
Mar ’24€59.19
€66.87
+13.0%
4.6%€73.16€60.03€47.8516
Feb ’24€61.58
€65.07
+5.7%
5.4%€71.99€59.07€50.5417
Jan ’24€59.89
€66.28
+10.7%
5.1%€74.05€60.76€52.5617
Dec ’23€60.21
€66.83
+11.0%
6.0%€74.91€58.58€50.3017
Nov ’23€62.83
€71.52
+13.8%
7.8%€84.54€61.76€45.5217

Analyst Forecast: Target price is less than 20% higher than the current share price.

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